Is CXDO Stock Undervalued?

A comprehensive valuation analysis of Crexendo Inc (CXDO) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

89765463.4% upside potential

Based on our analysis, Crexendo Inc appears to be potentially undervalued at the current price of $6.97. Our fair value estimate of $6256659.77 suggests upside potential of approximately 89765463.4%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing CXDO relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
51.86
High
P/B Ratio
3.64
High
P/S Ratio
3.36
Moderate
EV/EBITDA
24.71
High

Understanding the Metrics

  • P/E Ratio: At 51.86x earnings, CXDO is trading above the typical market average of 15-20x.
  • P/B Ratio: A P/B of 3.64 means investors pay $3.64 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 3.36 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: This ratio of 24.71 helps compare CXDO to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Crexendo Inc stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$6.97
vs
Fair Value Estimate
$6256659.77
Implied Return+89765463.4%

Our DCF model suggests CXDO may be undervalued by approximately 89765463.4%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price
$6.97
Analyst Target
$8.92
Implied Upside27.9%

The consensus analyst price target of $8.92 suggests 27.9% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Crexendo Inc (CXDO) appears to be undervalued at $6.97. With a fair value estimate of $6256659.77, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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